Global digital transformation is driving growth across Microsoft 365 and SharePoint as organizations invest in technology to empower employees to do their best work. More than 350,000 organizations now have SharePoint and the data they are storing over doubled last year alone.

We’re hearing customers want to put even more content into SharePoint to take advantage of new team collaboration and enterprise content management experiences, while moving off on-premise servers, file shares, and 3rd party cloud offerings.

Today we are announcing a 20x increase in the SharePoint Online per user license storage allocation. This will increase to 1 TB plus 10 GB per user license purchased, up from 1 TB plus .5 GB per user license purchased. Note this does not include SharePoint Online kiosk plans including Office 365 F1 and Microsoft 365 F1.

All Office 365 services that use SharePoint for content services, including Microsoft Teams and Office 365 Groups, will benefit from this substantial storage increase.

Example scenarios of increased storage allocation

100 user licenses

5000 user licenses

100,000 user licenses

Base tenant allocation

1 TB

1 TB

1 TB

Per user license allocation

1 TB (100 * 10 GB)

50 TB (5000 * 10 GB)

1000 TB (100,000 * 10 GB)

Total tenant allocation

2TB

51 TB

1001 TB

This change will start rolling out in late June 2018 and will be completed by the end of August 2018. Once complete, you’ll see this increased storage in your SharePoint Online admin center. If you are currently paying for additional storage you can decrease this as needed after this change is reflected in your tenant.

As always, you can purchase additional storage if needed from within the SharePoint Online admin center on a per-gigabyte (GB), per-month basis.

We are humbled by SharePoint Online’s customer momentum and look forward to helping you achieve more with this additional content storage for your teams and organization.

Great news Aaron. Does this change also mean we will now have increased capacity in the hybrid search index? Example 50TB = 50,000,000 Million record capacity would be bumped to 1000TB/1,000,000,000 records if we go by 100k users.

Yes. This upcoming increase to the SharePoint Online storage allocation also applies to the number of on-premises items an organization can index in Office 365 with the cloud hybrid search solution. Read search limits for SharePoint Online for more information.

Is this also for Education A5 customers? Also, you wrote "As always, you can purchase additional storage if needed from within the SharePoint Online admin center on a per-gigabyte (GB), per-month basis." I've never been able to do that. From our admin center I can only add storage by buying additional user licenses, making it expensive storage. Is there another way to buy storage for SharePoint?

So, per user storage increases 20x (0,5GB -> 10GB), while per tenant storage remains the same (1TB). At the same time, due to manatory versioning of libraries, the storage requirements might increase up to 100x (100 being the minimal allowed number of document versions in libraries). For those who have a small number of users and a large number of files that are often being modified (say AutoCAD drawings) this will result in less available space, not more.

In response to @Marko Čurko - The increase in versions (100) should not equate to a 100x increase in storage since SPOL should use shredded storage for versioning. The net effect of the changes should be to add considerably more storage allocation to each tenant while giving up a small fraction of that increase to the versions saved.

This has no change on on any other limit, but keep in mind that the limit isn't 5000 files, it is 30 million files per Document Library. The "5,000" is the List View Threshold, in which Microsoft has and continues to make significant headway into lifting or at the very least, greatly mitigating.

@Aaron Rimmer- This does not indicate a change in file size options, correct? (if I am correct), 15GB is the file size limit at the moment, but as an org using Hydration Kits, complex imaging and more, we could really use something higher to completely replace on-prem file shares. A SharePoint site would be most appropriate here, and Azure File Shares are not an option due to ISP limitations.

This is a great step in the right direction - it's just the other part of the blocker that's stopping us from going all-cloud.

@Doug Petrole I believe that it is based on the underlying storage technology that needs to be used on each type of storage. Since the data resides in a SQL DB and the SharePoint data is more write heavy they probably have to add faster storage compared to fairly static file storage such as ODFB.

When Microsoft implemented the storage increase, the allocation for our organization went up to 18.1 TB. This morning while doing some work in SharePoint admin center I noticed our organization allocation dropped to 12.87 TB. We have the same number of licenses in our organization. We are trying to find out from our TAM and customer rep why this occurred. Has this happened to anyone else?